Nero recode problem

Im trying to burn 3 episodes of a tv series that are in avi format to a dvd. I've tried using Nero recode which I think encodes the files to dvd format, burns the files to DVD and installs menu when played back on a DVD player. Is this right? If not, what are the best programs to use? I want to fit 3 or so episodes to a 4.7 gb dvd without losing quality, is this possible?

I tried doing the above with 1 episode to see if it worked using nero recode. It came up with an error message towards the end. Please see below for the log file.

you're using crappy media that may cause this problem! use good media will stop many problems you might run into. Verbatim, Taiyo Yuden, Maxell, Sony..... look for the ones Made In Japan. the exception to this rule is Verbatim.

you are using up too much memory..... shut down unnecessary programs running in the background, no internet, no muti tasking! You have just about the minimum ram requirement so make sure you devote most of the memory to Nero!

you have InCD installed .... this Nero program interferes with DVD burning.... uninstall InCD!